Exam 9: International Factor Movements and Multinational Enterprises

The operations of an MNE have little effect on employment in either the host country or the home country.

Recent evidence suggests that wages paid by U.S.multinational enterprises to poor country workers are much lower than local manufacturing wages.

Are there any differences between the theory of multinational enterprises and conventional trade theory?

Imagine that in 2016 a U.S.firm acquired a plant in France.In 2017 that plant accounted for 10 percent of the U.S.firm's sales.Why is the U.S.firm NOT a multinational enterprise?

Critics of U.S.trade and immigration policy maintain that

Imagine that Amazon purchases a Japanese grocery store chain and begins home delivery of groceries in Japan.This is an example of

The effect of workers migrating from low-wage Mexico to high-wage United States is to redistribute income from capital to labor in the United States and from labor to capital in Mexico.

In the United States, labor unions have generally resisted efforts to implement restrictions on the number of foreigners allowed into the country.

Figure 9.1 illustrates the market conditions facing SKF and Timken, initially operating as competitors in the domestic ball bearing market. Each firm realizes constant long-run costs, MC₀=AC₀. Figure 9.1. International Joint Venture -Consider Figure 9.1.Assume Venture Company's formation yields new cost reductions, indicated by MC₁=AC₁, which result from wage concessions accepted by Venture Company employees.Compared to the original competitive equilibrium, the net effect of Venture Company's formation on welfare now is

Sinopec Group would undertake forward vertical integration if it acquired oil wells in the Middle East.

____ refers to highly educated and skilled people who migrate from poor developing countries to wealthy industrial countries.

The migration of workers from Mexico to the United States tends to exert downward pressure on the wages of native U.S.workers that compete against Mexican workers for jobs.

Suppose that Samsung's production costs are the same in both China and India.Also suppose that Samsung can produce cellphones in China for an average cost of $10 per phone for 300 million phones, $12 per phone for 200 million phones, and $15 per phone for 100 million phones.If customers in India demand 100 million phones and customers in China demand 200 million phones, and there are transportation costs of $6 per phone, Samsung's lowest cost option is to

In recent years, the LARGEST amount of U.S.direct investment abroad has occurred in

As workers migrate from low-wage Mexico to high-wage United States, wages tend to rise in Mexico and fall in the United States.

"Guest worker" programs generally result in temporary migration of workers from

Foreign-owned companies in the United States operate under more strict antitrust, environmental, and other regulations than U.S.-owned companies.

Conglomerate integration would occur if General Motors Inc.of the United States acquired a controlling interest in a British chemical company.

MOST foreign direct investment in the United States occurs in

Suppose that regardless of the amount of production, a subsidiary's per unit costs are always less than a local firm's.If there are significant tariffs, in this case ________________is likely to be the lowest-cost method of supplying goods abroad.